Taxation (International and Other Provisions) Act 2010 section 448

Decommissioning

Section 448 extends the qualifying infrastructure company rules to cover the decommissioning of public infrastructure assets, and sets out how decommissioning funds are treated for the purposes of the Chapter.

• The Chapter applies to the decommissioning of a public infrastructure asset in the same way as it applies to providing one, where decommissioning includes demolishing and putting out of use.
• When assessing whether a company is a qualifying infrastructure company, any shares it holds in a decommissioning fund, and any loan relationships or financing arrangements with a decommissioning fund, are excluded from consideration (along with any income from those assets).
• A decommissioning fund is itself treated as a qualifying infrastructure company for the purposes of the Chapter.
• A decommissioning fund is defined as a fund that holds investments solely to finance the decommissioning or other provision of public infrastructure assets, and is restricted from using the proceeds or income for any purpose other than that or returning surplus funds.